First Read Hits & Takes By JLN Staff The U.S. Senate has unanimously confirmed Chris Giancarlo as Chairman, Quintenz and Behnam as Commissioners.~JJL The latest in Asia Pacific Financial News from John Lothian News for August 3, 2017 is available here Trade Alert President Henry Schwartz‘s talk is today’s video from MarketsWiki Education. The other videos we have released so far are Everyone Can’t Be the Best from former NYSE Euronext CEO Duncan Niederauer, The Concept of Basis from Gregg Doud, president of the Commodity Markets Council, and The State of Today’s Markets: Issues and Opportunities from Tabb Group founder…

Comments Off on Interactive Brokers’ market making segment feels impact of options business wind-down; A striking stat shows why even the bears are tempted to bet on stocks; Vix index sends mixed messages to investors

Observations & Insight Hits and Takes By JLN Staff Today is day two of the Chicago version of MarketsWiki Education World of Opportunity at the Stuart School of Business at Illinois Tech. We have the largest audience scheduled today for two sessions, one at 1 PM and another at 3 PM. We still have room for last minute additions as well. Our speakers include Richard Sandor, Bryan Durkin, Terry Savage, Joe Guinan, Amy Shelly and Jennifer Wilson at the first session. At session two we have Mehmet Yanilmaz, Julie Armstrong Menacho, Keith Petersen, Patrick Kenny, David Kelbaugh and Jay Feuerstein…

Comments Off on Two Market Giants Tried to Create a $75 Billion Mega-Exchange; The Mystery of the Stubbornly-Low Volatility Index Is Deepening; Ex-Credit Suisse Trader Lures $1.6 Billion of Client Cash

Lead Stories Two Market Giants Tried to Create a $75 Billion Mega-Exchange Matthew Leising – Bloomberg CME, ICE discussed a merger after Deutsche Boerse-LSE’s deal; They’re no longer negotiating, unclear why talks broke down The world’s biggest exchanges are still looking for deals even though the merger of Deutsche Boerse AG and London Stock Exchange Group Plc was scuttled by European regulators. jlne.ws/2pxJcnX ****SD: Speaking of tie-ups, there was this story about a potential deal last week from Business Insider – TCI’s Chris Hohn on LSE – ICE deal The Mystery of the Stubbornly-Low Volatility Index Is Deepening Dani Burger…

Observations & Insight Take Our Survey – Again By Jim Kharouf, JLN Editor-in-Chief & CEO Sometimes these things happen. The link we provided yesterday only allowed one person to take the survey. We know there are more than one of you willing and able to take it. Here’s the link. Please take a few minutes to help us out about what you like and what you don’t like about our publications and websites. The questions are supposed to be fun, funny and for us, enlightening. It’s also a great place to leave us comments and suggestions for future content and…

Lead Stories Hedging demand perks up even as volatility craters Saqib Iqbal Ahmed – Reuters Soaring U.S. share prices and plunging market volatility measures may paint a picture of optimism, but there are signs in the equity options market that investors have started to question how long this goldilocks period can last. jlne.ws/2lvZDxd Derivatives market is short of a $3.7tn lifeboat John Dizard – Financial Times For institutions that use derivatives, collateral put up by their counterparties provides the same reassurance lifeboats do on a ship. Unfortunately, for all the post-crisis reforms, it would appear that we are a couple…

Lead Stories Low VIX Masks Insurance Markup Options Traders Are Paying Cecile Vennucci – Bloomberg Here’s another sign that beneath the surface of placid stock markets, investors aren’t exactly sound asleep. It’s the persistently high premium traders are paying for equity options, visible in the difference between implied and realized volatility in the S&P 500 Index. The gap, definable as the intangible cost of stock insurance over and above what is accounted for by the market’s swings, has now lingered for 51 trading days. jlne.ws/2lr71d6 ****SD: Volatility = rough play right now. Semi-related retail investor story below about the use…

Observations & Insight Hungry for more: Dash Financial Sees Opportunity In A New Broker Landscape Jim Kharouf – JLN For some firms today, being young has its advantages. Dash Financial might just be one of those young and agile companies that can take advantage of the currents that are pushing and pulling the industry. jlne.ws/2iC5W4m ****SD: In case you missed it yesterday. Lead Stories Options on ETFs Are Too Big to Ignore Mary Savoie, Executive Director, OIC – OCC Some facts are too big to ignore and some trends too dramatic to dismiss. When you look at the growth of…

First Read David Norman, Essex University – What Sets Graduates Apart? MarketsWikiEducation.com “The industry feels like it has lost its way.” In this video from MarketsWiki Education’s London Event, David Norman, a lecturer at Essex University and Queen Mary University of London, discusses the current landscape of the industry and how to stand out from the competition during a job search. Every year he sees hundreds of students and found that there is no shortage of ‘doers’ — those who can successfully adapt to structure and learn a skill set. To Norman, the industry needs more people willing to think…

Comments Off on Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote; Option Writing Mutual Funds Gain Fans in Volatile Times; Rates Are Poised to Rise But the VIX of Treasurys is Super Low – What Gives?

Observations & Insight Stepping Forward in London By John J. Lothian Well, it is about time. I will be delivering my first presentation as part of MarketsWiki Education World of Opportunity in London on Monday. Due to a scheduling conflict, Jock Percy of Perseus had to withdraw from the event on October 31. Stuff happens and you roll with it. So it will be my turn to step up and be a presenter. The question in my mind is whether I can keep my presentation in the 12 to 14 minute segments we allow the speakers. I am going to…